Experts say minimum wage won’t make life easier

The government’s announcement of an $18 minimum wage, expected to take effect in January 2025, has been criticised.

Labor expert Herbert Joch said the minimum wage is a compromise that, while it will help very low-income workers, will hardly make their lives easier.

The Ministry of Labor stressed in an announcement released over the weekend that the new minimum wage standard should serve as the minimum wage that employers should pay to their employees, adding that companies should not reduce employees’ wages based on this figure.

“The $18 an hour is a compromise. If you look at the Namibian constitution, it calls for a minimum living wage, it is well below that. However, if we look at the very low wages of retail workers and farm workers and domestic workers, they are often paid less than $10 an hour. So this helps them make at least $1,000 or more.”

Jockey added that they have to wait and see if the minimum wage will be implemented because many provisions of the Labor Law are not implemented as they should be. “However, it will only be a good thing if the minimum wage is implemented and we can achieve it because wages are still too low. It takes very strong unions to ensure the implementation of the minimum wage and negotiate for higher wages,” he said.

“There needs to be a hotline where workers can expose their working conditions and alert the authorities. There needs to be a mechanism in place where workers can report incidents without becoming victims,” ​​Jauch added.

‘Unique’ agricultural sector

This was strongly opposed by the management of the Agricultural Employers Association (AEA), especially after calling in 2021 for an exemption from the national minimum wage because agricultural remuneration uniquely includes housing, cash and food.

“The phased model adopted by the Ministry of Labour is neither feasible nor affordable,” the report said. “This adjustment is ill-considered as farming communities across the country are experiencing the worst drought in a century and President Ngolo Mbemba has declared a state of disaster.”

Meanwhile, activist Michael Amushelelo echoed Yah’s sentiments, adding that the government should be pushing for a living wage instead of a minimum wage. “It’s good to see the cabinet finally waking up and realising that most of us are still being exploited. The proposed rate of N$18 per hour is welcome, but employers, knowing how the capitalist system works, may reduce workers’ working hours.”

He added that currently a security guard is paid 8.75 naira per hour, working 12 hours a day for 28 days, which averages out to 2,940 naira per month. If the new minimum wage is implemented, security guards will earn about 6,048 naira per month.

“That’s why I say working hours should remain the same, including the number of working days,” he said.

Amushelelo also expressed concern about the minimum wage, which will be implemented in January next year. “The big question is whether this is just another election gimmick.”

Initial point

Esther Mbathera, a representative of the Namibian Media Professionals Union (Nampu), stressed the importance of industry standards. “We must realise that the proposed minimum wage does not specify which category of people it applies to. For the media industry, this should not be seen as a final wage but a starting point,” she said.

Mbathera highlighted the unique challenges facing journalists, noting that the work of journalists carries significant risks, especially for those doing investigative and political reporting, which can pose serious security threats.

“Journalists should be paid accordingly. They don’t work for minimum wage; sometimes they risk their lives,” she said.

She further assured that once Nampu is formally registered, the union will advocate for a minimum wage appropriate for the media industry.

Justina Jonas, secretary general of the Metal and Allied Workers Union of Namibia (Manwu), said they appreciated the introduction of a minimum wage but it was not enough.

“It’s not enough but it’s a basis. If you’re getting 18 naira an hour, you get extra compensation for overtime. Workers still have the right to collectively bargain for higher wages. There was nothing before and now there is, and we as a labour movement should be grateful for that.”